How Do Employer Mandate Penalties Work If The Employer Does Not Offer Coverage

Penalty A “no offer” penalty.

In 2015 the “no offer” penalty will apply if an employer does not offer coverage to at least 70% of full-time employees and their dependents. The percentage that must be offered coverage to avoid the “no offer” penalty will revert to 95% of employees and dependents in 2016.

Employer did not offer coverage to substantially all FT employees and dependents (children)

$2,000 x (all FT employees – 30)

For 2015, ALEs (Applicable Large Employer) with 100+ FT/FTE employees can reduce their FT employee count by 80 when calculating the penalty